Meet the Hedge Fund Privateer Who Is Shrinking Workers Pensions.
|Alan Pyke October 28, 2014 ThinkProgress Arnold’s spokespeople bristle at the suggestion that the billionaire is out to cut pensions, insisting that he only wants a realistic accounting of the under-funding problem. But the similarities between what Raimondo did in Rhode Island and what the Arnold Foundation advocates nationwide are striking.|
When longtime private equity analyst Gina Raimondo won her bid to become treasurer of her home state in 2010, Rhode Island’s public pension system was in such disarray that federal regulators were sniffing around to make sure the state was reporting the funding levels accurately.
Within two years, Raimondo (D) would push through the most significant cuts to public worker retirement benefits in the country and begin a campaign for the Governor’s mansion. The changes she masterminded in 2011 shrank the state’s pension funding gap by billions of dollars almost overnight, an achievement that would have taken years under the more moderate reforms other states have tried. But the rapid, aggressive approach came at a steep cost for the 66,000 men and women who teach, fight fires, and administer public programs in the state.
After years of paying into a retirement system that promised fixed annual payments in their golden years, Rhode Island’s public workforce got herded into a new, far riskier system. Raimondo’s policy is what’s known as a “hybrid pension,” where the system of guaranteed payments to retirees was replaced by a combination of individual investment accounts and a much smaller version of the traditional pension payments. The change amounted to a large benefit cut for thousands of workers.
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Reposted from Portside.
This John D. Arnold is the same guy funding the anti teacher union effort in California in this election. http://wp.me/pachF-6ex